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Airtel may hike tariffs post Lok Sabha elections. Will Jio do the same?
Currently, Airtel's tariffs are at a premium compared to Jio and with the hike the gap between the two will rise.
Bharti Airtel may hike headline tariffs following Lok Sabha elections in the country, it was reported. Although Jio may not do the same, Financial Express reported as the company will look to bank on measures promoting higher data consumption. Currently, Airtel's tariffs are at a premium compared to Jio and with the hike the gap between the two will rise.
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As Jio remains hopeful of rise in data consumption amid the Indian Premier League, it hopes to gain from subscriber churn from Airtel. As per the report, “Executives said that since data consumption is higher in 5G packs, users move on to higher plans for better viewing experience.”
Jio is also attempting to increase the take up of its JioFiber broadband plans by bundling it with different services, executives said as per the report, adding, “With users moving to higher 5G packs, higher realisation from Fiber plans, and some churn from other operators, we expect Arpu to rise without going for a headline tariff hike."
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Brokerages are also of the view that Airtel will take the lead in this regard with Bernstein saying, “We expect tariff hikes to be announced post elections (July to October time frame). We expect a strong 15% tariff hike. The tariff hike will be led by Bharti and that will see Arpu stabilising to Rs260+ levels by FY26."
It added, “We expect further consolidation of the market by 2026 with revenue share of Jio at 48% and Bharti at 40%. Jio subscriber share is expected to reach 47% while Bharti share should reach 36%.”
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Earlier, Bharti Airtel CEO and managing director Gopal Vittal said, “We will keep seeing what opportunities are there to raise tariffs, and at some stage, if there has to be some move, we will make it. If competitors do not follow, we will reverse it.”
